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Prospects for 2026: “Goldilocks” Performance, but Risks Linger - Citigroup
Citi
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Prospects for 2026: “Goldilocks” Performance, but Risks Linger Citigroup
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The desk sees the beginning of 2026 as emblematic of a 'Goldilocks' market environment, characterized by strong asset performance and signs of economic growth, while disinflation trends persist. Per the full note from UBS, Jason Draho highlighted that U.S. equities, particularly small-cap stocks, are leading the charge upward, reflecting increasing cyclical growth expectations. However, there are no imminent high-impact events on the horizon to disrupt this trajectory, thereby solidifying our outlook that leans towards sustained currency strength amid bullish sentiment.
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